Anheuser-Busch Watered-Down Beer MDL Dismissal Affirmed

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On Tuesday, the 6th U.S. Circuit Court of Appeals affirmed the dismissal of a consolidated class action lawsuit that accused Anheuser-Busch of overstating the alcohol content of its beers.

Anheuser-Busch argued that the beer labeling class action lawsuit should be dismissed because federal beverage-labeling regulations allow variation of 0.3 percent in the listed alcohol content, even if the alleged misrepresentation was intentional. The beer maker claims its beverages fall within this allowed range.

The district court agreed with Anheuser-Busch’s argument and dismissed the watered-down beer class action lawsuit in 2014.

The plaintiffs subsequently filed an appeal, arguing that the district court erred in holding that the federal beverage-labeling regulations were only meant to apply to unintentional variations. The three-judge appellate panel disagreed, finding that “nothing in that statement of policy evinces an intent to disallow intentional variations.”

The appellate court also found that the plaintiffs failed to adequately argue claims under the consumer protection laws of various states, and that they could not raise the issues for the first time on appeal. Throughout the litigation, Anheuser-Busch consistently argued that if the district court concludes that it complied with the state and federal beverage-labeling regulations, then the consumer protection claims should be dismissed.

“If the plaintiffs felt otherwise, one would have expected them to vigorously contest Anheuser-Busch’s claims by informing the district court of their disagreement,” the appellate court wrote in its order affirming the dismissal of the watered-down beer class action lawsuit. “But the plaintiffs never did so in any of their written submissions to the district court.”

According to the Anheuser-Busch beer labeling class action lawsuit, Anheuser-Busch adds extra water to its beers to dilute the alcohol content of the beverages to levels that are below the percentage listed on the product labels. This practice allegedly allows Anheuser-Busch to save money on production costs and gain a competitive advantage in the marketplace while intentionally misrepresenting the quality of its products to consumers.

The plaintiffs allege that they relied on the alcohol content listed on the label when deciding to purchase Anheuser-Busch beer, and that they would not have purchased the products if they knew they would receive a product with less alcohol than was listed on the labels.

At least six putative beer labeling class action lawsuits were filed against Anheuser-Busch, and they were consolidated in Ohio federal court in June 2013. The multidistrict litigation (MDL) is titled In re: Anheuser-Busch Beer Labeling Marketing and Sales Practices Litigation.

The products at issue in the beer labeling MDL include Budweiser, Bud Ice, Bud Light Platinum, Michelob, Michelob Ultra, Hurricane High Gravity Lager, King Cobra, Busch Ice, Natural Ice, Black Crown and Bud Light Lime.

The plaintiffs are represented by John R. Climaco and John A. Peca of Climaco Wilcox Peca Tarantino & Garofoli Co. LPA., Ronald Frederick of Frederick & Berler LLC and Joshua D. Boxer of Bramson Plutzik Mahler & Birkhaeuser.

The Anheuser-Busch Watered-Down Beer Class Action Lawsuit is In re: Anheuser-Busch Beer Labeling Marketing And Sales Practices Litigation, Case No. 14-3653, in the U.S. Court of Appeals for the Sixth Circuit.